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Chinese stocks look ready to outperform with COVID-easing catalysts on deck, Europe’s top asset manager says

Europe’s leading asset manager Amundi has turned bullish on Chinese stocks, saying they are set to outperform given the potential developments around COVID ahead.

Amundi, which manages $2 trillion in assets worldwide, is watching for China to roll out a self-developed vaccine, the firm’s CIO Vincent Mortier told Bloomberg. He added it’s also waiting to see whether the government moves to reopen from COVID-19 containment restrictions at the Party Congress in the second half of 2022.

Those developments would be important catalyst’s for China’s stocks, Mortier said, per Bloomberg’s report Monday.

“It’s more a question of when will it happen, not if it will happen,” Mortier said. “To be underweight Chinese equities today is risky. It’s better to be overweight because medium-term, we think there is value.”

Beijing’s zero-COVID policy has hit its economy hard, after the government in March imposed harsh restrictions to contain a surge in infections.